Stock market today: Dow Jones rises ahead of retail sales data as Tesla falls again

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Higher-than-expected inflation could prompt the Federal Reserve to raise rates sooner rather than later.

Karen Bleier / AFP / Getty Images

Shares rose slightly after President Joe Biden signed the infrastructure deal and a meeting between Biden and Chinese leader Xi Jinping highlighted better relations. Retail sales data came in stronger than expected.

Future for the


Dow Jones Industrial Average

showed an open of around 70 points, or 0.2%, higher, after the index dropped 12 points on Monday to close at 36,087.


S&P 500

and


Nasdaq Composite

increased by 0.1%.

Biden signed the $ 1 trillion infrastructure spending program on Monday night. The markets had digested that the bill had been approved in the House, but the president’s signature consolidates its implementation. More investment in roads, bridges and high-speed Internet means more sales for manufacturers, construction companies and semiconductor manufacturers. Plus, spending can create jobs and boost the economy.

Separately, Biden and Xi Jinping’s virtual meeting on Monday night brought good news. The two leaders agreed to try to ease tensions on several issues, which investors said would point to a reduction in tariffs on goods entering the two countries in the future. This would mean lower costs for US importers and an available Chinese market for exporters and companies setting up in China.

Elsewhere, retail sales were up 1.7% month-over-month for October, better than estimates of a 1.2% increase and above the previous reading of an increase of 0, 8%.

Still, Tuesday’s stock market gains were nothing to write home about. Rising bond yields is a factor that has recently played a role in limiting stock market gains. The 10-year Treasury yield, which fell on Tuesday, was up 1.6%, a key level, from 1.44% on November 9. Many expect the yield to continue to climb, as it is still below the expected annual inflation rate over the long term. . Higher bond yields make future earnings less valuable, putting downward pressure on stock valuations.

“There is not a lot of momentum in the markets at the moment and this is reflected in stocks treading water again on Tuesday,” wrote Craig Erlam, senior market analyst at Oanda.

Overseas, Hong Kong


Hang Seng Index

increased by 1.3% while in London the


FTSE 100

underperformed its continental European peers, falling 0.1%.

In the cryptocurrency markets,


Bitcoin

was down around 8% to almost $ 60,000, according to price data from CoinDesk, with


Ether

with prices falling about 9% to almost $ 4,300.

Here are five actions in motion Tuesday:


Walmart

(ticker: WMT) the stock rose 1.2% after the company reported earnings of $ 1.45 per share, beating estimates of $ 1.40 per share, on sales of $ 140.5 billion. dollars, above expectations of $ 135.6 billion.


Home deposit

The stock (HD) rose 1.2% after the company reported earnings of $ 3.92 per share, beating estimates of $ 340 per share, on revenue of $ 36.8 billion. dollars, higher than expectations of $ 35 billion.


Working day

The stock (WDAY) gained 2.7% after being upgraded to Buy from Neutral at UBS.


Southwest Airlines

The stock (LUV) fell 1% after being demoted to Neutral Buy at Goldman Sachs.


You’re here

(


TSLA

) was down 1.3% in pre-market trade in the United States. The stock has come under pressure in recent days, with CEO Elon Musk selling his stake.

Write to Jacob Sonenshine at jacob.sonenshine@barrons.com


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